Improvements made to a leased property, unless specifically exempt, revert to the lessor at the end of the lease. These improvements can be capitalized for the life of the lease or the life of the assets whichever is shorter.

Question

Quizplus · Accepted Answer

This statement is true. Improvements made to a leased property typically become the property of the lessor at the end of the lease unless there is an agreement in place that states otherwise. These improvements can be capitalized and amortized over the shorter of the life of the lease or the useful life of the asset.

Improvements Made to a Leased Property, Unless Specifically Exempt, Revert